Professional Liability (E&O) Insurance for Construction Professionals

When your work involves more than swinging hammers—when you provide design input, recommendations, or oversight—your risk shifts. And standard insurance won’t cover it.

That’s where professional liability insurance for contractors comes in. Also known as Errors & Omissions (E&O) Insurance or Contractors Professional Liability, this coverage protects you when a mistake in your professional services leads to financial loss—even if no one gets hurt and nothing gets physically damaged.

Construction Isn’t Just Physical—E&O Covers the Rest

Today’s contractors take on more than labor. Design-build projects, construction management, material recommendations, consulting—these come with liability exposure beyond what general liability covers.

E&O fills that gap. It covers legal defense and damages when a client accuses you of:

• Making a costly mistake in your design or plans
  
• Failing to deliver on agreed project specs or timelines
  
• Giving advice that causes a financial loss
  
• Negligence in your role as a consultant or manager
  

Let’s say your team recommends a type of HVAC system for a commercial build. Months later, the system fails and the client sues for $80,000 in repairs and lost revenue. No one was injured, and there was no property damage—but the lawsuit still hits hard. This is where E&O steps in.

What This Policy Covers (and Doesn’t)

A typical contractors E&O policy covers:

• Legal defense costs (even if you’re not at fault)s
  
• Settlements and judgments for claims of negligence or error
  
• Costs stemming from missed deadlines, design flaws, or bad advice

It doesn’t cover:

• Bodily injury or property damage (that’s General Liability)
  
• Employee injuries (that’s Workers’ Comp)
  
• Fraud or intentional misconduct

E&O is usually written on a claims-made basis, meaning the policy must be active when the claim is made (not just when the work was performed). Maintaining continuous coverage matters.

Typical limits start at $1M per claim / $2M aggregate, but we tailor policies based on your project size, scope, and contract needs.

How E&O Fits Into Your Construction Risk Strategy

Think of professional liability as part of a layered approach:

• General Liability: covers jobsite injuries & property damage
  
• Builder’s Risk: protects the project itself during construction
  
• Professional Liability: covers financial losses from professional mistakes
  
• Surety Bonds: guarantee contract performance
  
• Workers’ Compensation: protects your crew
  

When your reputation is tied to your expertise—not just your labor—you need more than the basics.

Our Advantage: Specialty Access for Construction E&

Not all insurance carriers offer E&O for contractors, and not all agents understand what’s at stake.



At Calrisk, we specialize in the construction space. We work with specialty markets to place tailored E&O policies for:

• GCs taking on design responsibilities
  
• MEP consultants and engineering support roles
  
• Subcontractors advising on materials or specs
  
• Firms managing subcontractors or overseeing execution
  

We’ll help assess whether you face professional liability risks and find a policy that fits. And if you already have E&O, we can review for gaps or outdated endorsements that could leave you exposed.

Not Sure if You Need It? Let’s Talk

Professional liability isn’t just for engineers and architects anymore. If you provide advice, specs, or plans, you could be held responsible when things don’t go as planned.



Contact Calrisk for a quick E&O risk assessment. We’ll help you decide if you need it—and if you do, we’ll find the right fit at a competitive rate.